Question

The adjusted trial balance of Maytagg Repairs on December 31, 2011, follows.
Required
1. Prepare an income statement and a statement of retained earnings for the year 2011, and a classified balance sheet as of December 31, 2011.
2. Enter the adjusted trial balance in the first two columns of a six-column table. Use columns three and four for closing entry information and the last two columns for a post-closing trial balance—see the headings below. Insert an Income Summary account as the last row in the trial balance.
3. Enter closing entry information in the six-column table and prepare journal entries for them.
Analysis Component
4. Assume for this part only that:
a. None of the $1,600 insurance expense had expired during the year. Instead, assume it is a prepayment of the next period’s insurance protection.
b. There are no earned and unpaid wages at the end of the year. (Hint: Reverse the $700 wages payable accrual.)
Describe the financial statement changes that would result from these two assumptions.


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  • CreatedMarch 18, 2015
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